This information relates to the stationery transactions of Wiltons for the year: 1 Stationery bought for cash,

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This information relates to the stationery transactions of Wiltons for the year:
1 Stationery bought for cash, R200.
2 Stationery bought on credit, R300.
3 Stationery on hand at the end of the year, R150.


You are required to:
1 Show the entries for the year in accounts under the accounting equation under each of these assumptions: 

a. Stationery is treated as an expense at date of purchase.

b. Stationery is treated as an asset at the date of purchase.

2. Discuss the different approaches and decide which one you prefer.

3. Discuss whether the use of alternative methods makes any difference to the information regarding position or performance for the year.

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Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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